Online delivery app lists Costco food-cart items at steep markups, according to Yahoo Finance

A Yahoo Finance small-business report says an app is delivering food items associated with Costco food carts at prices that can be vastly higher than what shoppers typically pay at the warehouses. The story frames the difference with a simple comparison: would a customer pay $18 for a hot dog that normally costs $1.50?

According to the report, the app-market pricing can imply markups “of as much as 1,100%,” a level that, if accurate, would be far outside the normal range for pricing changes driven by time, location, or demand. The comparison underscores a central issue for customers using delivery platforms, namely whether the prices reflect standard retail markups, additional service costs, or something closer to a retailer-adjacent arbitrage model.

Costco’s business model has long leaned on low margins and predictable pricing at the point of sale, with warehouse food offerings typically viewed as affordable add-ons for members. A third-party delivery flow that prices those same items at multiples could therefore feel especially stark to customers, even if the delivery fees, platform fees, and procurement logistics are substantial.

The Yahoo Finance report does not, in the information available here, clarify key operational details such as the app’s name, whether any Costco licensing or partnerships exist for the delivery service, or how the items are obtained and fulfilled in each market. It also does not indicate whether Costco was directly involved, whether Costco-approved signage or branding is used, or whether the listings include clear disclosures about who is selling the food.

What the report does highlight is the practical effect on consumers: when third-party apps repackage physical retail items into a delivery product, customers may face pricing that is difficult to reconcile with the item’s face value at the warehouse. That gap can be widened by delivery surcharges, “service” charges, taxes, and estimated preparation and travel costs, but 1,100% markups would still be an extreme result even after accounting for typical delivery economics.

For Costco and other retailers, the broader sector context is that delivery platforms increasingly sit between customers and merchants. Even when retailers themselves do not advertise delivery, third parties can create delivery-like experiences that use the retailer’s recognizable inventory, brand cues, or nearby purchasing routes. Regulators and consumer-rights groups in many jurisdictions have focused on whether customers receive clear disclosures about the seller of record and the total price.

A key caveat is that the Yahoo Finance post, as provided here, offers limited verifiable details beyond the headline claim and the example framing. It is therefore not possible to determine from this material alone whether the markups include legitimate, itemized delivery costs, whether the listings vary by location or time, or whether Costco has any policy response.

Going forward, the main questions to watch are whether the app and the listings provide clearer pricing breakdowns, whether Costco issues guidance or takes enforcement steps if it believes the commerce is misleading, and whether other outlets report on similar listings. Customers and policymakers are likely to pay close attention to how the seller of record and total charges are displayed in the checkout flow, not just the advertised item price.